ONGC readies for Rs366cr shale well campaign

Despite reservations, junior ONGC managers are determined to launch an 11 shale oil and gas well exploration campaign in the Cambay basin beginning April 2018.

Drilling locations have been finalised for the Rs366cr ($55m) campaign in Mehsana, Gandhinagar and Ahmedabad districts, the Kheda district and Bharuch districts, according to documents submitted to the Gujarat Pollution Control Board (GPCB) seen by this report. Public hearings are scheduled at Bharuch on October 13, Mehsana on October 24, Nandej village in Ahmedabad district on October 25, Piyaj village in Gandhinagar district on October 26 and Nawagam village in Kheda district on November 3.

One of the biggest challenges to shale exploration in India is the need for huge volumes of water. Unlike in the US where the shale revolution is the envy of the world, water is scarce in India.

ONGC admits it will face this problem at the planned 11 wells. "But at first we will 'frack' only a single zone," says an ONGC source.

"Complex multi-stage 'fracking' won't be carried out at this stage." ONGC says it will need 400-600 cubic metres of water for each 'frack' job. On August 12, ONGC directors TK Sengupta and VP Mahawar dashed hopes of a shale gas revolution in India by publicly announcing ONGC had lost interest.

"Shale in India is bad!" said Sengupta. "When I say bad, I mean very bad!"

Five wells will be drilled in Bharuch at Gandhar Ext-III (Vagra), V, VII, IX and Pakhajan Ext-II (Vagra); two at the Paliyad-Kalol-Limbodra block near Gandhinagar; one more at the Kalol West Ext-I additional areas block and two at the Jotana-Warosana and Nandasan-Langhnaj blocks. One will be drilled at Nandej East (Daskroi) in Ahmedabad and one at Nawagam in Kheda. "All 11 will be vertical wells," reports an ONGC source. When asked about doubts voiced by Sengupta and Mahawar our source takes a different view. "We have to learn from the US," he says. "Shale oil and gas can play an important role in meeting our energy demand." ONGC previously carried out a four-well pilot shale programme in the Cambay basin with ConocoPhillips after the oil ministry announced policy guidelines on October 14, 2013 allowing ONGC and Oil India to begin shale oil and gas exploration.

Five wells will be drilled in Bharuch at Gandhar Ext-III (Vagra), V, VII, IX and Pakhajan Ext-II (Vagra); two at the Paliyad-Kalol-Limbodra block near Gandhinagar; one more at the Kalol West Ext-I additional areas block and two at the Jotana-Warosana and Nandasan-Langhnaj blocks. One will be drilled at Nandej East (Daskroi) in Ahmedabad and one at Nawagam in Kheda. "All 11 will be vertical wells," reports an ONGC source. When asked about doubts voiced by Sengupta and Mahawar our source takes a different view. "We have to learn from the US," he says. "Shale oil and gas can play an important role in meeting our energy demand." ONGC previously carried out a four-well pilot shale programme in the Cambay basin with ConocoPhillips after the oil ministry announced policy guidelines on October 14, 2013 allowing ONGC and Oil India to begin shale oil and gas exploration.